Financing Your Project
Before applying for funding, it is important to access expert mortgage advice so that you have a clear understanding of your budget and borrowing options.
We recommend BuildStore Mortgage Services as your first point of call when evaluating your mortgage options. BuildStore is the UK’s leading self-build mortgage organisation; they offer a range of mortgages and exclusive deals to meet different financial requirements of timber frame projects. BuildStore’s specialist mortgage advisors are able to recommend and tailor borrowing solutions to your financial circumstances, design and build specifications and payment schedule.
How Self-Build Mortgages Work
Your self-build home will be built and paid for in stages. To support this, instead of a single payment, self-build mortgages release funds in stages during the build process. There are two types of self-build mortgage, and the type that you need depends on these factors:
- How funds are released during the build
- Whether your stage payments are subject to an increase in the value of works completed
- Whether your stage payments are guaranteed based on your costs
You may be eligible for a Valuation-Based Stage Payment Mortgage, in which funds are released after each stage of the building process is completed and a valuation shows an uplift in value. This mortgage may not suit build payment terms for customers who have selected timber frame constructions.
You may instead be eligible for the BuildStore Cost-Based Stage Payment Mortgage, in which guaranteed payments are based on your build costs and released either before or after each build stage, depending on your payment schedule.
Flexible Funding for Your Dream Home
Your build payment schedule will likely be the main influence behind your choice of mortgage. Often, the payment schedule dictates the need for guaranteed cost-based stage payments. This is particularly relevant to timber frame constructions, as most suppliers require payment in full before the structure can be delivered onsite.
In this case, the BuildStore Cost-Based Stage Payment Mortgage allows payments to be released before each build stage and is guaranteed to be based on your costs so that you can meet your supplier’s payment terms. You will have access to funds in the early stages of the building process, allowing you to secure land purchase, frame deposit and the erection of your timber frame project.
The BuildStore Difference
- Specialist knowledge and expertise
- Competitive interest rates
- Exclusive products and lenders
- Interest-only payments during the build
- Guaranteed cost-based stage payments to coincide with your costs
- Ability to stay in your current home until your new one is complete
- Tailored cash flow to suit your build and payment schedule
- Borrow up to 95% of your land and build costs
For more information and expert advice on how to fund your self-build click here to enquire or call 0345 223 4888.
Your home may be repossessed if you do not keep up repayments on your mortgage.